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That may be a significant burden for smaller loans.
They had advanced to the higher loan level after repaying the smaller loans.
Entrepreneurs who are being squeezed are trying to get smaller loans or looking for alternative financing.
That sent the percentage of troubled million-dollar loans spiraling up much faster than the smaller loans.
Still, their credit probably isn't as strong as that of the federal government, which guarantees the smaller loans.
Investing in a handful of large microlenders is easier than making dozens of smaller loans to untested, fledgling ones.
To bring smaller loans back into the fold, the S.B.A. seems to have its work cut out for itself.
Beyond that, it holds thousands of smaller loans on hotels, restaurants, office buildings and even car-repair shops.
Those obligations are the same regardless of the size of the loan, making bigger loans more profitable for lenders than smaller loans.
In April, G.M. repaid the balance of its $6.7 billion loan from the federal government, along with smaller loans from the Canadian and Ontario governments.
But tight credit and the recession have increased the demand for smaller loans in the United States, giving microlending a higher profile and broadening its appeal.
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CEO of Professional Science Editing for Scientists @ prosciediting.com